Roman Tereshchenko On Combating Financial Crimes: Global KYC And AML Standards

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Roman Tereshenko Tereshchenko discusses the importance of adhering to international standards in the areas of KYC and AML to prevent financial crimes. In 2023, approximately $3.1 trillion of illegal funds related to various criminal activities were identified in the global financial system. These sums include human trafficking at $346.7 billion, illegal drug trade at $782.9 billion, and terrorism financing at $11.5 billion. Roman Tereshchenko emphasizes that international efforts to combat money laundering and criminal financing are becoming increasingly stringent, and he would like to discuss this further.
The global fight against money laundering occurs through AML and KYC mechanisms. Roman Tereshchenko explains that AML (including KYC - Know Your Customer and AML - Anti-Money Laundering) is designed to detect and prevent financial crimes by analyzing suspicious transactions and the activities of their initiators.
KYC focuses on gathering information about customers and verifying their identities, helping companies ensure they know their customers and can identify them. On the other hand, AML includes a broader range of measures and procedures to prevent financial crimes, such as analyzing customers and their transactions, Roman Tereshenko assessing risks, and monitoring suspicious activity.
The difference between KYC and AML lies in the fact that KYC is part of the AML program and serves as the foundation for identifying customers and assessing their risks.
International standards and AML rules are regulated by national laws and organizations in each country. Roman Tereshchenko cites several examples, such as Germany's Anti-Money Laundering Act, Singapore's Payment Services Act, and the UK legislation on proceeds of crime. He notes that companies should develop their own measures to combat money laundering in accordance with AML rules in their country or region.
International cooperation in combating money laundering also plays an important role. Different countries have AML systems that include measures for comprehensive customer verification, monitoring financial transactions, and establishing specialized bodies to analyze suspicious activity. This helps companies and governments effectively combat financial crimes and build trust in financial services.